1. What Happened?: Next Biomedical Achieves Earnings Surprise
Next Biomedical reported an earnings surprise in its 2025 semi-annual report, exceeding the operating profit consensus by +8%. While the market anticipated an operating loss of -500 million KRW, the company achieved a turnaround to profitability with an operating profit of 20.6 billion KRW.
2. Why?: Consistent R&D Investment and Global Market Expansion
This impressive performance can be attributed to the global market expansion of their endoscopic hemostatic agent and consistent R&D investments. Sales increased by 94.9% year-on-year to 774.4 billion KRW, and the growth potential of ‘Nexsphere™-F,’ which received FDA Breakthrough Device Designation, is also significant. Continuous R&D investment reaches 50% of sales, representing a strategic investment to secure future growth engines.
3. So What?: Increased Investment Attractiveness and Momentum for Stock Price Growth
This earnings surprise has significantly enhanced Next Biomedical’s investment appeal. The successful turnaround to profitability boosts market confidence and is likely to act as a momentum for stock price increases. Furthermore, a stable financial structure (debt-to-equity ratio of 32%) and ample liquidity (cash and cash equivalents of 407 billion KRW) further strengthen investment security. Global partnerships with Medtronic and CMI also serve as strong factors supporting Next Biomedical’s growth.
4. Investor Action Plan: BUY Recommendation, Continuous Monitoring Required
Currently, Next Biomedical is highly attractive for investment, warranting a BUY recommendation. However, continuous monitoring of potential risks, such as fluctuations in exchange rates and interest rates, and management of the R&D pipeline, is necessary. It is essential to continuously review global macroeconomic indicators and R&D investment performance and adjust investment strategies accordingly.